Attacking Jerome Powell distracts from Republicans’ thin legislative record and policies that continue to squeeze American household incomes
T
he US government’s authoritarian and vexatious attack on Jerome Powell, the chair of the Federal Reserve, should be seen in the light of America’s affordability crisis, which Donald Trump once dismissed, but is now scrambling to claim as his cause. The cost of living is eroding his support ahead of the congressional midterms. By launching a legal assault on the Fed, Mr Trump is trying to shift blame for borrowing costs.
Yet despite controlling the presidency, Senate and the House, Republicans have passed little beyond a large tax-cutting bill that benefits the rich. They have not legislated on housing supply, childcare, healthcare costs or wages. Indeed most of their actions are worsening affordability, notably deferring action even though millions face a sharp rise in their health insurance bills. Mr Trump’s sudden enthusiasm for credit card caps and housing interventions is pure opportunism.
Affordability is not an abstract talking point; it is increasingly driving US politics. The rise of New York’s Zohran Mamdani – whose victory was built by zeroing in on the cost of living – crystallised a broader shift: voters respond to real help, not rhetorical blame. Clearly, Mr Mamdani offered concrete policies and institutional reform. Democratic leaders are listening. Importantly, Senator Elizabeth Warren is prepared to take on the vested interests in her own party. Republicans have offered gestures, scapegoats and reversals of their own past consumer protections.
